Energy 4 Impact and GIZ collaborate in supporting pico hydro projects financing in Rwanda
Energy 4 Impact has signed an agreement with Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) to assist mini-grid projects in receiving result-based financing (RBF), as part of their Energising Development (Endev) programme.
Based on their previous experience in supporting private enterprises in the on-grid and off-grid power sector in Rwanda, both parties have formalised their cooperation in an effort to provide leaner and better services to the emerging off-grid and mini-grid energy sector in Rwanda.
The key objective of the partnership will be to support mini-grid projects in their application phase to increase their eligibility to secure RBF.
Under the Scaling-up Off-grid Energy in Rwanda (SOGER) programme, designed to respond to the country’s challenges and government priorities to reduce poverty and increase energy access in rural regions, Energy 4 Impact has been supporting 30 pico hydro projects in last mile areas.
So far, 10 of these are being funded by the Swedish International Development Cooperation Agency (Sida) and the remaining 20 still need funding. This new partnership will seek to provide RBF financing for at least five of them.
The partnership will focus on providing technical and business development support to mini-grid developers including one-to-one advisory services on technical designs, business plans and cash flow analysis as well as related trainings, supporting mini-grid developers to develop high quality applications to increase their chances of RBF eligibility, eliminating any prospect of grant overlaps through increased communication and information sharing on projects supported by each party.
So far, three out of five projects have been pre-approved by Endev for financing.
“Mini-grids are a promising solution for providing modern energy services to the rural population in Rwanda that will not get a connection to the national grid in the foreseeable future. Supporting companies to deliver these energy services is a sustainable approach to ensure that the private sector is capacitated and continues to work on mini-grids in the future,” said Victor Hakuzwumuremyi, Programme Manager for Energy 4 Impact.
Energy 4 Impact has already supported 15 pico hydro mini-grid developers in Rwanda under its CARE2 programme funded by SIDA by providing business and technical assistance. Energy 4 Impact also secured funding from Sida to continue providing business and technical support to mini-grid developers through the SOGER programme.
Energising Development (EnDev) is an energy access partnership currently financed by six donor countries. EnDev promotes sustainable access to modern energy services that meet the needs of the poor - long lasting, affordable, and appreciated by users.
Present in Rwanda since 2006, EnDev has invested around 10 Mio Eur in Renewable development as well as to support off-grid and mini-grid sectors. More specifically, EnDev has already supported the development of 23 mini-grids and has signed contracts with 4 companies.